FTX, currently navigating bankruptcy, has filed a motion seeking approval from the court to settle with former Alameda Research CEO, Caroline Ellison.
The proposed agreement, filed on October 7th, would require Ellison to hand over almost all of her assets to FTX creditors, except for those forfeited to the government in her criminal case or set aside for legal fees.
Ellison Agrees to Forfeit Assets and Aid FTX Investigations
Once she fulfills the terms, Ellison will have little left beyond the personal property. However, the exact value of her forfeited assets remains unspecified. As part of the deal, she has also agreed to assist FTX with its ongoing investigations.
Her assistance could include sharing valuable information about her time at Alameda and her relationship with FTX founder Sam Bankman-Fried.
FTX believes that settling with Ellison is more cost-effective than pursuing a lengthy legal battle, as they are confident they would not recover more in court. A lengthy court battle would also be cost-intensive for Ellison.
FTX Sued Ellison in 2023
The proposed settlement comes months after FTX sued Ellison in 2023, accusing her of making several fraudulent transactions and abusing her role as executive. Ellison was part of a larger bankruptcy saga involving former FTX CEO Sam Bankman-Fried.
FTX surprisingly filed for bankruptcy in late 2022. Customers lost billions. Further investigations revealed a deep fraud within the company, which many likened to a Ponzi scheme.
BREAKING: Caroline Ellison admitted to stealing FTX customer funds during Alameda’s ‘all-hand meeting’ for staff.
She called them “open-term” loans. pic.twitter.com/LKqat3EMzK
— Bitcoin Archive (@BTC_Archive) October 13, 2023
Bankman-Fried was believed to have spent customer funds on his extravagant lifestyle, purchasing luxury homes, cars, etc. FTX sued Ellison, hoping to recover over $28 million, including bonus payments from 2021 and 2022, and call options and equity fraudulently transferred to her. A hearing to discuss the settlement is set for November 20.
Ellison has cooperated with prosecutors and received a generous sentence of 2 years. Her sentence was significantly lower than the 25 years handed to Bankman-Fried and the over 7 years given to Ryan Salame, another FTX executive.
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The post Caroline Ellison Agrees to Asset Turnover in FTX Settlement Deal appeared first on Altcoin Buzz.
This articles is written by : Fady Askharoun Samy Askharoun
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